October 25, 2013

SEC and FINRA Issue Proposed Rules on Crowdfunding

On October 23, 2013, the SEC in an Open Meeting issued proposed regulations enabling crowdfunding under Title III of the JOBS Act.  The new regulation is called Regulation Crowdfunding and if finalized will create rules under the 33 Act and the 34 Act that we enable small businesses to raise capital with an exemption from registration of their securities.

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May 2, 2013

When is Crowdfunding Not Crowdfunding?

The answer to this question is when its done under §201 of the JOBS Act.  On March 26, almost a full year after the JOBS Act was signed into law, the SEC issued a no-action letter FundersClub Inc.  and FundersClub Management LLC . (“FundersClub”) FundersClub is a venture capital fund adviser.  It manages venture capital funds and operates a website.  Once FundersClub has identified start-up companies, it enters into an agreement with the company to raise a target amount.  This is where the website comes into play.  Once the agreement is reached with the start-up FundersClub post information provided by the company on its website.  The information is available to FundersClub members all whom must be accredited investors.  Does any of this sound familiar?

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